Meta reworks its Ads on Reels monetization program with a new performance-based payout model

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Meta is testing a new payout model for its Ads on Reels monetization program that pays creators based on the performance of their public Reels, not the revenue from ads on their Reels, the company announced Tuesday. The tech giant also announced that it is expanding its Ads on Reels monetization program on Facebook to more creators and will begin testing the program on Instagram in the coming weeks.

The company started testing ads on Facebook reels last year as a way for creators to monetize their reels. Meta is now inviting thousands of creators to join the program, including many creators who previously participated in Facebook’s Reels Play bonus program, which was recently discontinued.

Payouts are determined by the number of plays, meaning the better a creator’s Reel performs, the more the creator can earn. Over time, Meta may look at other factors when determining payouts, the company says.

“We’re learning through our testing that payouts tied to performance are better at balancing everyone’s needs,” Meta wrote in a blog post. “Many variables beyond creators’ control have traditionally influenced their ad revenue, such as how many ads have already been shown to the person viewing their content or whether there’s a relevant ad to show that viewer. A performance-based model allows creators to focus on the content that engages their audience and helps them grow; advertisers get access to more ad inventory to reach more people; and people get a more consistent viewing experience with more relevant ads.”

All creators invited to join the program will be automatically added to the new payout model. Creators who were already part of the program will be transitioned to the new payout model in the coming weeks.

Image Credits: meta

To be eligible for an invitation to the program on Facebook, creators must live in one of the 52 countries and meet minimum requirements, such as being at least 18 years old and complying with Facebook’s Partner Monetization Policies and Content Monetization Policies. Once a creator has been added to the program, they must complete the onboarding process, which includes accepting the terms of use and providing payout information. From there, all they have to do is create compelling reels to start earning.

Meta notes that you can check if you’re part of the program on Facebook by going to the professional dashboard and navigating to the monetization tools section. If you’ve been invited, you’ll see ‘Ads by roles’ and you can select ‘Set up’ to begin onboarding.

As for the launch of the program on Instagram, Meta says it will begin testing ads on Instagram Reels in the coming weeks with a similar performance-based payout model among a small group of creators and advertisers in select markets.

“We are still early in our work with Ads on Reels and will continue to monitor these tests closely as we work to provide the best solution for creators, advertisers and our apps in general,” the company wrote in the announcement post.

When Meta decided to end the Reels Play bonus program, it appeared that the company was moving away from paying creators based on the popularity of their short videos. However, the revamped performance-based payout model for the Ads on Reels program indicates that Meta is still focused on rewarding creators who create engaging content while also raking in ad money.

Since short video is one of the most popular formats on social media today, it’s no surprise that Meta focuses on ad revenue sharing models when it comes to rewarding creators. Meta isn’t the only company looking to prioritize ad revenue sharing models over creator funds, as both Snapchat and YouTube Shorts have moved to ad revenue sharing models.

In addition, Meta announced today that it plans to test a performance-based payout model for in-stream ads on Facebook with a small group of creators, noting that it wants to support creators who create all types of content.

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